Intangible Assets, Net and Goodwill

12 Months Ended

Dec. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets Disclosure [Text Block]

NOTE 6—INTANGIBLE ASSETS, NET AND GOODWILL

Intangible assets, net consisted of the following:

	December 31,
(in thousands)	2020		2019
Intangible assets subject to amortization:
Patents and purchased technology	$	14,198	$	14,198
Customer relationships	23,000		23,000
Gross carrying amount	37,198		37,198
Accumulated amortization:
Patents and purchased technology	(14,198)		(13,311)
Customer relationships	(17,363)		(15,713)
Accumulated amortization	(31,561)		(29,024)
Net carrying amount	5,637		8,174
Intangible assets not subject to amortization	97,921		115,421
Intangible assets, net	$	103,558	$	123,595

Amortization expense for intangible assets subject to amortization was $2.5 million for the year ended December 31, 2020, and $3.0 million for the years ended December 31, 2020 and 2019.

Impairment charges for the intangible assets not subject to amortization are included in SG&A expense and were $17.5 million for the year ended December 31, 2020. The impairment of the prAna trademark and trade name intangible asset was determined as part of the annual impairment test. The fair value was estimated using a relief from royalty method under the income approach. Cash flow projections were developed in part from the Company's annual planning process. The discount rate is the estimated weighted-average costs of capital of the reporting unit from a market-participant perspective. The decline in estimated fair value from the fourth-quarter 2019 impairment test reflects a lower estimated royalty rate and a decline in forecasted revenues. There was no impairment recorded for intangible assets not subject to amortization for the years ended December 31, 2019 and 2018.

Substantially all of the Company's goodwill is recorded in the U.S. segment. The Company determined that goodwill was not impaired for the years ended December 31, 2020, 2019, and 2018.

The following table presents the estimated annual amortization expense for the years 2021 through 2025:

(in thousands)
2021	$	1,650
2022	1,650
2023	1,650
2024	688
2025	—